Motivations to start businesses: Institutional context

Abstract

This preprint is the second part of the Necessity-driven Entrepreneurship: a cross-country Analysis project. This paper takes institutional environment's perspective on entrepreneurship in general, on necessity-driven entrepreneurship in particular, therefore incorporating its multidimensional nature and enabling more detailed understanding of interaction between entrepreneurial motivation and institutional arrangements. The main content of this research determines the significant factors in the regulatory, normative, and cognitive pillars of the institutional environment. Using the databases of World Bank, the International Labour Organization, the Global Entrepreneurship Monitor survey, the Doing Business, and the World Economic Forum the set of the variables of the institutional environment was defined. These data are from 2009 to 2014, and range across 70 countries. Our research shows that different institutional factors influence the total level of entrepreneurial activity and motivation structure differently.